Lifestyle
Maybe you bake, design jewellery, or make candles from scratch to fill your free time or because you enjoy working with your hands.
Maybe you've become so good at your hobby that people compliment you often or tell you they are willing to pay to get their hands on your creations.
If this is the case, it's a good idea to consider turning your hobby into a business. But before you do, consider taking these steps first:
Perform a self-assessment
A hobby is something that brings you joy! That helps you escape from the stress of work and everyday life.
Are you passionate enough about your hobby to do it full-time, or will making it your livelihood become the thing that causes you stress?
Are you ready to run a business, serve customers, and set as well as meet deadlines?
These are just a few questions you should ask yourself before you start a business.
Do your research
We know your hobby is close to your heart. But will it bring value to others?
We're not trying to discourage you! We're trying to help you determine if there's demand for what you’re offering.
One way to find out is to check if others sell a similar product or service locally or online.
Another way is to turn your hobby into a side hustle before you turn it into a full-fledged business. Test whatever you have to offer on friends and family. Showcase your work at bazaars and community gatherings.
This way, you can find out if people not only need your product or service but want it.
We must tell you that it's easy to get caught up in the research stage and that you will probably have to conduct more research later. But if you have enough evidence to show that your product or service has potential in the market, then it's worth taking the next step.
Determine your business model
Now, it's time to think about how you will run your business.
Will you operate from home or rent office space? Will you run your business solo or have a partner? Will you sell your product or service online or in person?
And speaking of selling, how much will it cost you to make your product or service, and how much will it cost customers?
Answering these questions will help you write a business plan, which is essential for several reasons.
Write a business plan
A business plan is a document that describes your business's objectives and how you plan to achieve them in detail.
It also lays out your business's marketing strategy and financial plan, among other details.
Why do you need one? Because without one, you won't be able to secure a business loan.
Why should you have one? Because it can help you focus on your goals, track your progress, and spot any gaps.
Develop your brand
Your brand is everything, and everything is your brand.
Your brand is how people perceive you. It's how you make them feel. It's your image. It’s your culture… and the list can go on.
And it's through your brand assets - your business name, logo, slogan, and tone of voice, among other elements - that your brand comes to life.
So, when you create your brand assets, make sure they convey the purpose of your business and resonate with your target market.
Build an online presence
You've tested your product or service on family and friends. You've showcased your work at bazaars and community gatherings. You've discovered that people love them.
What now?
Now, you have to create a website and social media pages. Otherwise, how will your target market find you?
You don't have to go all out from the get-go. You can start with free social media accounts. Then, as your sales grow, you can try paid marketing opportunities, like social media ads.
Separate your personal and business finances
Knowing how to manage your money is crucial as a business owner. You need to know about all incoming and outgoing funds. And to keep track of these funds, we recommend you open a separate account solely for your business finances. Learn more about our business banking services here.
This way, you won't accidentally spend your business funds on personal expenses or vice versa. Plus, you will be able to identify if you need to curb your personal spending to have enough money flow into your business.
We hope this article has encouraged you to take the first step to turn your hobby into a business.
And who knows?
Maybe by this time next year, you won't just be running a business. You will be a finalist in our SME Awards, competing for the chance to win 50,000 JOD!
If you need more guidance, specifically about registering your business, apply here to get free legal advice from an expert.
